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					TRANSPORTATION CODE           CHAPTER 501. CERTIFICATE OF TITLE ACT



                               TRANSPORTATION CODE

                         TITLE 7. VEHICLES AND TRAFFIC

 SUBTITLE A. CERTIFICATES OF TITLE AND REGISTRATION OF VEHICLES

                  CHAPTER 501. CERTIFICATE OF TITLE ACT

                       SUBCHAPTER A. GENERAL PROVISIONS

     Sec. 501.001.          SHORT TITLE.      This chapter may be cited as the

Certificate of Title Act.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.



     Sec. 501.002.          DEFINITIONS.      In this chapter:

            (1)    "Certificate of title" means an instrument issued

under Section 501.021.

            (2)    "Dealer" means a person who purchases motor vehicles

for sale at retail.

            (3)    "Department"        means        the   Texas    Department      of

Transportation.

            (4)    "Distributor" means a person engaged in the business

of   selling      to    a    dealer    motor    vehicles        purchased   from    a

manufacturer.

            (5)    "First sale" means:

                   (A)      the bargain, sale, transfer, or delivery of a

motor vehicle that has not been previously registered or licensed,

with intent to pass an interest in the motor vehicle, other than a

lien, regardless of where the bargain, sale, transfer, or delivery

occurred;    and

                   (B)      the registration or licensing of that vehicle.

            (6)    "House trailer" means a trailer designed for human

habitation.       The term does not include manufactured housing.

            (7)    "Importer"         means     a     person,     other     than    a

manufacturer, that brings a used motor vehicle into this state for



                                 Page -1 -
sale in this state.

          (8)    "Importer's certificate" means a certificate for a

used motor vehicle brought into this state for sale in this state.

          (9)    "Lien" means:

                 (A)   a lien provided for by the constitution or

statute in a motor vehicle;

                 (B)   a security interest, as defined by Section

1.201, Business & Commerce Code, in a motor vehicle, other than an

absolute title, created by any written security agreement, as

defined by Section 9.102, Business & Commerce Code, including a

lease, conditional sales contract, deed of trust, chattel mortgage,

trust receipt, or reservation of title; or

                 (C)   a child support lien under Chapter 157, Family

Code.

          (10)   "Manufactured housing" has the meaning assigned by

Chapter 1201, Occupations Code.

          (11)   "Manufacturer" means a person regularly engaged in

the business of manufacturing or assembling new motor vehicles.

          (12)    "Manufacturer's permanent vehicle identification

number" means the number affixed by the manufacturer to a motor

vehicle in a manner and place easily accessible for physical

examination and die-stamped or otherwise permanently affixed on one

or more removable parts of the vehicle.

          (13)    "Motorcycle" means a motor vehicle, other than a

tractor, designed to propel itself with not more than three wheels

in contact with the ground.

          (14)    "Motor vehicle" means:

                 (A)   any motor driven or propelled vehicle required

to be registered under the laws of this state;

                 (B)   a   trailer   or    semitrailer,   other   than

manufactured housing, that has a gross vehicle weight that exceeds

4,000 pounds;



                            Page -2 -
                 (C)   a house trailer;

                 (D)   an all-terrain vehicle, as defined by Section

502.001, designed by the manufacturer for off-highway use that is

not required to be registered under the laws of this state; or

                 (E)   a motorcycle, motor-driven cycle, or moped that

is not required to be registered under the laws of this state,

other than a motorcycle, motor-driven cycle, or moped designed for

and used exclusively on a golf course.

          (15)    "New motor vehicle" means a motor vehicle that has

not been the subject of a first sale.

          (16)    "Owner"    includes     a   person,          other   than   a

manufacturer, importer, distributor, or dealer, claiming title to

or having a right to operate under a lien a motor vehicle that has

been subject to a first sale.

          (17)    "Semitrailer" means a vehicle that is designed or

used with a motor vehicle so that part of the weight of the vehicle

and its load rests on or is carried by another vehicle.

          (18)    "Serial number" means a vehicle identification

number that is affixed to a part of a motor vehicle and that is:

                 (A)   the     manufacturer's           permanent      vehicle

identification number;

                 (B)   a   derivative    number    of    the    manufacturer's

permanent vehicle identification number;

                 (C)   the motor number;      or

                 (D)   the vehicle identification number assigned by

the department.

          (19)    "Steal" has the meaning assigned by Section 31.01,

Penal Code.

          (20)    "Subsequent sale" means:

                 (A)   the bargain, sale, transfer, or delivery of a

motor vehicle that has been previously registered or licensed in

this state or elsewhere, with intent to pass an interest in the



                             Page -3 -
vehicle, other than a lien, regardless of where the bargain, sale,

transfer, or delivery occurs;      and

                  (B)   the registration of the vehicle if registration

is required under the laws of this state.

           (21)    "Title receipt" means an instrument issued under

Section 501.024.

           (22)    "Trailer" means a vehicle that:

                  (A)   is designed or used to carry a load wholly on

the trailer's own structure;      and

                  (B)   is drawn or designed to be drawn by a motor

vehicle.

           (23)   "Used motor vehicle" means a motor vehicle that has

been the subject of a first sale.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.        Amended

by Acts 1999, 76th Leg., ch. 414, Sec. 2.42, eff. July 1, 2001;

Acts 2003, 78th Leg., ch. 1276, Sec. 14A.821, eff. Sept. 1, 2003.

Amended by:

     Acts 2005, 79th Leg., Ch. 586, Sec. 1, eff. September 1, 2005.

     Acts 2007, 80th Leg., R.S., Ch. 972, Sec. 64, eff. September

1, 2007.



     Sec. 501.003.      CONSTRUCTION.    This chapter shall be liberally

construed to lessen and prevent:

           (1)    the theft of motor vehicles;

           (2)    the importation into this state of and traffic in

motor vehicles that are stolen;         and

           (3)    the sale of an encumbered motor vehicle without the

enforced disclosure to the purchaser of a lien secured by the

vehicle.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.



     Sec. 501.004.      APPLICABILITY.    (a)   This chapter applies to a



                             Page -4 -
motor vehicle owned by the state or a political subdivision of the

state.

     (b)    This chapter does not apply to:

            (1)   a        trailer    or    semitrailer    used    only    for   the

transportation of farm products if the products are not transported

for hire;

            (2)   the filing or recording of a lien that is created

only on an automobile accessory, including a tire, radio, or

heater;

            (3)   a motor vehicle while it is owned or operated by the

United States;        or

            (4)   a    new     motor       vehicle   on   loan    to   a   political

subdivision of the state for use only in a driver education course

approved by the Central Education Agency.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.



     Sec. 501.005.          CONFLICTS      WITH   BUSINESS   &    COMMERCE    CODE.

Chapters 1-9, Business & Commerce Code, control over a conflicting

provision of this chapter.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.



           SUBCHAPTER B. CERTIFICATE OF TITLE REQUIREMENTS

     Sec. 501.021.          CERTIFICATE OF TITLE.          (a)    A motor vehicle

certificate of title is an instrument issued by the department that

includes:

            (1)   the name and address of the purchaser and seller at

the first sale or the transferee and transferor at a subsequent

sale;

            (2)   the make of the motor vehicle;

            (3)   the body type of the vehicle;

            (4)   the manufacturer's permanent vehicle identification

number of the vehicle or the vehicle's motor number if the vehicle



                                     Page -5 -
was    manufactured       before    the   date   that    stamping    a     permanent

identification number on a motor vehicle was universally adopted;

             (5)    the serial number for the vehicle;

             (6)    the number on the vehicle's current Texas license

plates, if any;

             (7)    a statement:

                    (A)    that no lien on the vehicle is recorded;              or

                    (B)    of the name and address of each lienholder and

the date of each lien on the vehicle, listed in the chronological

order in which the lien was recorded;

             (8)    a space for the signature of the owner of the

vehicle;

             (9)    a statement indicating rights of survivorship under

Section 501.031;

             (10)    if   the   vehicle    has   an     odometer,    the    odometer

reading indicated by the application for the certificate of title;

 and

             (11)    any other information required by the department.

       (b)   A certificate of title must bear the following statement

on its face:

       "UNLESS OTHERWISE AUTHORIZED BY LAW, IT IS A VIOLATION OF

STATE LAW TO SIGN THE NAME OF ANOTHER PERSON ON A CERTIFICATE OF

TITLE OR OTHERWISE GIVE FALSE INFORMATION ON A CERTIFICATE OF

TITLE."

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.                   Amended

by Acts 1999, 76th Leg., ch. 1423, Sec. 1, eff. Sept. 1, 1999.



       Sec. 501.022.       CERTIFICATE OF TITLE REQUIRED.           (a)    The owner

of a motor vehicle registered in this state may not operate or

permit the operation of the vehicle on a public highway until the

owner obtains a certificate of title for the vehicle or until the

owner obtains registration for the vehicle if a receipt evidencing



                                   Page -6 -
title to the vehicle is issued under Section 501.029(b).

      (b)   A person may not operate a motor vehicle registered in

this state on a public highway if the person knows or has reason to

believe that the owner has not obtained a certificate of title for

the vehicle.

      (c)   The owner of a motor vehicle that is required to be

registered in this state must apply for a certificate of title of

the vehicle before selling or disposing of the vehicle.

      (d)   Subsection (c) does not apply to a motor vehicle operated

on a public highway in this state with a metal dealer's license

plate or a dealer's or buyer's temporary cardboard tag attached to

the vehicle as provided by Chapter 503.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.       Amended

by Acts 2001, 77th Leg., ch. 67, Sec. 1, eff. Sept. 1, 2001.



      Sec. 501.023.     APPLICATION FOR CERTIFICATE OF TITLE.   (a)    The

owner of a motor vehicle must apply for a certificate of title:

            (1)   to the county assessor-collector in the county in

which:

                  (A)   the owner is domiciled;   or

                  (B)   the motor vehicle is purchased or encumbered;

and

            (2)   on a form prescribed by the department.

      (b)   The assessor-collector shall send the application to the

department not later than 24 hours after receiving the application.

      (c)   The owner or a lessee of a commercial motor vehicle

operating   under   the   International   Registration   Plan   or   other

agreement described by Section 502.054 that is applying for a

certificate of title for purposes of registration only must be made

directly to the department.     Notwithstanding Section 501.138(a), an

applicant for registration under this subsection shall pay the

department the fee imposed by that section.       The department shall



                              Page -7 -
send the fee to the appropriate county assessor-collector for

distribution in the manner provided by Section 501.138.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.             Amended

by Acts 1999, 76th Leg., ch. 1423, Sec. 2, eff. Sept. 1, 1999.



     Sec. 501.0234.       DUTY OF VEHICLE DEALER ON SALE OF CERTAIN

VEHICLES.    (a)    A person who sells at the first or a subsequent

sale a motor vehicle and who holds a general distinguishing number

issued under Chapter 503 of this code or Chapter 2301, Occupations

Code, shall:

            (1)    except as provided by this section, in the time and

manner provided by law, apply, in the name of the purchaser of the

vehicle, for the registration of the vehicle, if the vehicle is to

be registered, and a certificate of title for the vehicle and file

with the appropriate designated agent each document necessary to

transfer title to or register the vehicle; and at the same time

            (2)    remit any required motor vehicle sales tax.

     (b)    This section does not apply to a motor vehicle:

            (1)    that has been declared a total loss by an insurance

company in the settlement or adjustment of a claim;

            (2)    for   which    the   certificate   of   title   has   been

surrendered in exchange for:

                   (A)   a salvage vehicle title issued under this

chapter;

                   (B)   a nonrepairable vehicle title issued under this

chapter;

                   (C)   a   certificate     of   authority   issued     under

Subchapter D, Chapter 683;         or

                   (D)   an ownership document issued by another state

that is comparable to a document described by Paragraphs (A)-(C);

or

            (3)    with a gross weight in excess of 11,000 pounds.



                                 Page -8 -
     (c)    Each duty imposed by this section on the seller of a

motor vehicle is solely that of the seller.

     (d)    A   seller   who   applies     for   the   registration   or   a

certificate of title for a motor vehicle under Subsection (a)(1)

shall apply in the county as directed by the purchaser from the

counties set forth in Section 501.023 of this code.

     (e)    The department shall promulgate a form on which the

purchaser of a motor vehicle shall designate the purchaser's choice

as set out in Section 501.023 as the recipient of all taxes, fees,

and other revenue collected as a result of the transaction, which

the tax assessor-collector is authorized by law to retain.                 A

seller shall make that form available to the purchaser of a vehicle

at the time of purchase.

     (f)    A seller has a reasonable time to comply with the terms

of Subsection (a)(1) and is not in violation of that provision

during the time the seller is making a good faith effort to

comply.    Notwithstanding compliance with this chapter, equitable

title to a vehicle passes to the purchaser of the vehicle at the

time the vehicle is the subject of a sale that is enforceable by

either party.

Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.37(a), eff. Sept.

1, 1997.    Amended by Acts 1999, 76th Leg., ch. 1423, Sec. 3, eff.

Sept. 1, 1999;    Acts 2001, 77th Leg., ch. 76, Sec. 1, eff. May 14,

2001;     Acts 2003, 78th Leg., ch. 1325, Sec. 17.01, eff. Sept. 1,

2003;   Acts 2003, 78th Leg., ch. 1276, Sec. 14A.822, eff. Sept. 1,

2003.

Amended by:

     Acts 2005, 79th Leg., Ch. 1023, Sec. 1, eff. September 1,

2005.



     Sec. 501.0235.      SOCIAL SECURITY NUMBER OF TITLE APPLICANT:

AUTOMATED REGISTRATION AND TITLE SYSTEM.         (a)   The department shall



                               Page -9 -
require an applicant for a certificate of title to provide the

applicant's social security number to the department.

     (b)    The department or the county shall enter the applicant's

social security number in the department's electronic database but

may not print that number on the certificate of title.

     (c)    This section applies only in a county in which the

department's automated registration and title system has been

implemented.

Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.38(a), eff. Sept.

1, 1997.



     Sec. 501.024.         TITLE      RECEIPT.      (a)    A    county   assessor-

collector who receives an application for a certificate of title

shall, after the requirements of this chapter are met, including

the payment of the fees required under Section 501.138, issue a

title receipt on which is noted information concerning the motor

vehicle    required      for   the    certificate     of    title   under    Section

501.021, including a statement of the existence of each lien as

disclosed on the application or a statement that no lien is

disclosed.

     (b)    If a lien is not disclosed on the application for a

certificate of title, the assessor-collector shall mark the title

receipt "original" and deliver it to the applicant.

     (c)    If    a    lien    is    disclosed   on   the      application     for   a

certificate of title, the assessor-collector shall issue duplicate

title receipts.         The assessor-collector shall:

            (1)       mark one receipt "original" and mail or deliver it

to the first lienholder disclosed on the application;                    and

            (2)       mark the second receipt "duplicate original" and

mail or deliver it to the address of the applicant provided on the

application.

     (d)    A title receipt authorizes the operation of the motor



                                    Page -10 -
vehicle on a public highway in this state for 10 days or until the

certificate of title is issued, whichever period is shorter.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.                   Amended

by Acts 2001, 77th Leg., ch. 67, Sec. 2, eff. Sept. 1, 2001.



      Sec. 501.025.       TITLE     RECEIPT     REQUIRED      ON   FIRST          SALE;

MANUFACTURER'S CERTIFICATE.           A county assessor-collector may not

issue a title receipt on the first sale of a motor vehicle unless

the   applicant   for     the     certificate   of   title    provides       to    the

assessor-collector the application for a certificate of title and a

manufacturer's certificate, on a form prescribed by the department,

that:

            (1)   is assigned to the applicant by the manufacturer,

distributor, or dealer shown on the manufacturer's certificate as

the last transferee;       and

            (2)   shows     the     transfer    of   the     vehicle       from     its

manufacturer to the purchaser, whether a distributor, dealer, or

owner, and each subsequent transfer from distributor to dealer,

dealer to dealer, and dealer to applicant.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.



      Sec. 501.026.       IMPORTER'S      CERTIFICATE.         (a)     A      county

assessor-collector may not issue a title receipt for a used motor

vehicle imported into this state for the purpose of sale in this

state unless the applicant for the certificate of title provides

the assessor-collector with an importer's certificate properly

assigned by the importer.

      (b)   An importer's certificate must be accompanied by evidence

required by the department showing good title to the motor vehicle

and the name and address of any lienholder on the vehicle.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.




                                  Page -11 -
      Sec. 501.027.    ISSUANCE OF CERTIFICATE OF TITLE.       (a)    On the

day that a county assessor-collector issues a title receipt, the

assessor-collector shall mail to the department:

            (1)   a copy of the receipt;       and

            (2)   the evidence of title delivered to the assessor-

collector by the applicant.

      (b)   Not   later   than   the   fifth   day   after   the   date   the

department receives an application for a certificate of title and

the department determines the requirements of this chapter are met,

the department shall issue the certificate of title.          If a lien is

not disclosed on the application, the department shall send the

certificate by first class mail to the applicant at the address

provided on the application.           If a lien is disclosed on the

application, the department shall send the certificate by first

class mail to the first lienholder as disclosed on the application.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.           Amended

by Acts 2001, 77th Leg., ch. 67, Sec. 3, eff. Sept. 1, 2001.



      Sec. 501.0275.      ISSUANCE OF TITLE FOR UNREGISTERED VEHICLE.

(a)   The department shall issue a certificate of title for a motor

vehicle that complies with the other requirements for issuance of a

certificate of title under this chapter except that:

            (1)   the vehicle is not registered for a reason other

than a reason provided by Section 501.051(6);          and

            (2)   the applicant does not provide evidence of financial

responsibility that complies with Section 502.153.

      (b)   On application for a certificate of title under this

section, the applicant must surrender any license plates issued for

the motor vehicle and any registration insignia for validation of

those plates to the department.

Added by Acts 1999, 76th Leg., ch. 1423, Sec. 4, eff. Sept. 1,

1999.



                              Page -12 -
     Sec. 501.0276.        DENIAL OF TITLE RECEIPT OR CERTIFICATE OF

TITLE FOR FAILURE TO PROVIDE PROOF OF EMISSIONS TESTING.     A county

assessor-collector may not issue a title receipt and the department

may not issue a certificate of title for a vehicle subject to

Section 548.3011 unless proof that the vehicle has passed a vehicle

emissions test as required by that section, in a form authorized by

that section, is presented to the county assessor-collector with

the application for certificate of title.

Added by Acts 2001, 77th Leg., ch. 1075, Sec. 3, eff. Sept. 1,

2001.



     Sec. 501.028.    OWNER'S SIGNATURE.   On receipt of a certificate

of title, the owner of a motor vehicle shall write the owner's name

in ink in the space provided on the certificate.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.



     Sec. 501.029.    USE OF REGISTRATION RECEIPT OR TITLE RECEIPT TO

EVIDENCE TITLE.      (a)    A person may use a registration receipt

issued under Chapter 502 or a title receipt to evidence title to a

motor vehicle and not to transfer an interest in or establish a

lien on the vehicle.

     (b)   The department by rule may provide for the issuance of a

receipt that evidences title to a motor vehicle for registration

purposes only.    The fee for application for the receipt is the fee

applicable to application for a certificate of title.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.       Amended

by Acts 2001, 77th Leg., ch. 67, Sec. 4, eff. Sept. 1, 2001.



     Sec. 501.030.    MOTOR VEHICLES BROUGHT INTO STATE.   (a)    Before

a motor vehicle that was last registered or titled in another state

or country may be titled in this state, the applicant must furnish



                              Page -13 -
the   county     assessor-collector        with    a   verification      form    under

Section 548.256.

      (b)     Before a motor vehicle that was not manufactured for sale

or distribution in the United States may be titled in this state,

the applicant must:

              (1)   provide to the assessor-collector:

                    (A)   a bond release letter, with all attachments,

issued      by   the   United     States     Department        of   Transportation

acknowledging:

                          (i)    receipt    of     a   statement    of   compliance

submitted by the importer of the vehicle;                and

                          (ii)    that   the      statement    meets     the    safety

requirements of 19 C.F.R. 12.80(e);

                    (B)   a bond release letter, with all attachments,

issued by the United States Environmental Protection Agency stating

that the vehicle has been tested and shown to conform to federal

emission requirements;          and

                    (C)   a receipt or certificate issued by the United

States Department of the Treasury showing that all gas guzzler

taxes due on the vehicle under 26 U.S.C. Section 4064(a) have been

paid;    or

              (2)   provide to the assessor-collector proof satisfactory

to the assessor-collector that the vehicle was not brought into the

United States from outside of the country.

      (c)     Subsections (a) and (b) do not apply to a motor vehicle

lawfully imported into the United States by a distributor or dealer

from the vehicle's manufacturer.

      (d)     If a motor vehicle has not been titled or registered in

the United States, the application for certificate of title must be

accompanied by:

              (1)   a manufacturer's certificate of origin written in

English issued by the vehicle manufacturer;



                                 Page -14 -
                 (2)    the original documents that constitute valid proof

of ownership in the country where the vehicle was originally

purchased, with an English translation of the documents verified as

to   the     accuracy         of    the     translation         by   an    affidavit          of    the

translator;            or

                 (3)    if the vehicle was imported from a country that

cancels         the    vehicle        registration        and      title    for       export,       the

documents assigned to the vehicle after the registration and title

were    canceled,            with   an      English    translation         of        the   documents

verified as to the accuracy of the translation by an affidavit of

the translator.

       (e)       Before a motor vehicle that is required to be registered

in this state and that is brought into this state by a person other

than    a       manufacturer           or      importer      may     be     bargained,         sold,

transferred, or delivered with an intent to pass an interest in the

vehicle or encumbered by a lien, the owner must apply for a

certificate of title on a form prescribed by the department to the

county assessor-collector for the county in which the transaction

is to take place.               The assessor-collector may not issue a title

receipt unless the applicant delivers to the assessor-collector

satisfactory evidence of title showing that the applicant is the

owner      of    the        vehicle      and    that   the      vehicle         is    free    of    any

undisclosed liens.

       (f)       A county assessor-collector may not be held liable for

civil damages arising out of the assessor-collector's failure to

reflect on the title receipt a lien or encumbrance on a motor

vehicle to which Subsection (e) applies unless the assessor-

collector's failure constitutes wilful or wanton negligence.

       (g)       Until an applicant has complied with this section:

                 (1)    a     county      assessor-collector              may    not       accept    an

application for certificate of title;                        and

                 (2)    the applicant is not entitled to an appeal as



                                         Page -15 -
provided by Sections 501.052 and 501.053.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.



     Sec. 501.031.    RIGHTS OF SURVIVORSHIP AGREEMENT.    (a)   The

department shall include on each certificate of title a rights of

survivorship agreement form.    The form must:

           (1)   provide that if the agreement is signed by two or

more eligible persons, the motor vehicle is held jointly by those

persons with the interest of a person who dies to survive to the

surviving person or persons;    and

           (2)   provide blanks for the signatures of the persons.

     (b)   If the vehicle is registered in the name of one or more

of the persons who signed the agreement, the certificate of title

may contain a:

           (1)   rights of survivorship agreement signed by all the

persons;   or

           (2)   remark if a rights of survivorship agreement is

surrendered with the application for certificate of title or

otherwise on file with the department.

     (c)   Except as provided in Subsection (g),

           ownership of the vehicle may be transferred only:

           (1)   by all the persons acting jointly, if all the

persons are alive;    and

           (2)   on the death of one of the persons

                 by the surviving person or persons by transferring

the certificate of title, in the manner otherwise required by law

for transfer of ownership of the vehicle, with a copy of the death

certificate of the deceased person attached to the certificate of

title application.

     (d)   A rights of survivorship agreement under this section may

be revoked only by surrender of the certificate of title to the

department and joint application by the persons who signed the



                            Page -16 -
agreement for a new title in the name of the person or persons

designated in the application.

      (e)   A person is eligible to sign a rights of survivorship

agreement under this section if the person:

            (1)    is married and the spouse of the signing person is

the only other party to the agreement;

            (2)    is unmarried and attests to that unmarried status by

affidavit;    or

            (3)    is married and provides the department with an

affidavit from the signing person's spouse that attests that the

signing person's interest in the vehicle is the signing person's

separate property.

      (f)   If the title is being issued in connection with the sale

of the vehicle, the seller is not eligible to sign a rights of

survivorship agreement under this section unless the seller is the

child, grandchild, parent, grandparent, brother, or sister of each

other person signing the agreement.       A family relationship required

by this subsection may be a relationship established by adoption.

      (g)   If an agreement, other than the agreement provided for in

Subsection (a), providing for right of survivorship is signed by

two or more persons, the department shall issue a new certificate

of title to the surviving person or persons upon application

accompanied by a copy of the death certificate of the deceased

person.     The department may develop for public use under this

subsection an optional rights of survivorship agreement form.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.      Amended

by Acts 1997, 75th Leg., ch. 165, Sec. 30.39(a), eff. Sept. 1,

1997;     Acts 1999, 76th Leg., ch. 62, Sec. 17.05, eff. Sept. 1,

1999;   Acts 1999, 76th Leg., ch. 241, Sec. 1, eff. Sept. 1, 1999.



      Sec. 501.032.     ASSIGNMENT OF SERIAL NUMBER BY DEPARTMENT.

(a)   On proper application, the department shall assign a serial



                             Page -17 -
number to a house trailer, a trailer or semitrailer that has a

gross vehicle weight that exceeds 4,000 pounds, or an item of

equipment, including a tractor, farm implement, unit of special

mobile equipment, or unit of off-road construction equipment on

which:

            (1)     a    serial    number    was     not    die-stamped     by   the

manufacturer;       or

            (2)     the serial number die-stamped by the manufacturer

has been lost, removed, or obliterated.

     (b)    The applicant shall die-stamp the assigned serial number

at the place designated by the department on the house trailer,

trailer, semitrailer, or equipment.

     (c)    The manufacturer's serial number or the serial number

assigned by the department shall be affixed on the carriage or axle

part of the house trailer, trailer, or semitrailer.                   The department

shall use the number as the major identification of the vehicle in

the issuance of a certificate of title.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.



     Sec. 501.033.         ASSIGNMENT       OF     IDENTIFICATION       NUMBER   BY

DEPARTMENT.   (a)        A person determined by the department or a court

to be the owner of a motor vehicle, a part of a motor vehicle, or

an item of equipment including a tractor, farm implement, unit of

special    mobile       equipment,   or     unit    of     off-road    construction

equipment that has had the serial number removed, altered, or

obliterated may apply to the department for an assigned vehicle

identification number.

     (b)    An application under this section must be on a form

prescribed and furnished by the department and accompanied by the

certificate of title for the vehicle or other valid evidence of

ownership as required by the department if there is no certificate

of title.



                                  Page -18 -
      (c)   A fee of $2 must accompany each application under this

section to be deposited in the state highway fund.

      (d)   The assigned number shall be die-stamped or otherwise

affixed to the motor vehicle, part, or item of equipment at the

location and in the manner designated by the department.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.



      Sec. 501.034.      ISSUANCE OF TITLE TO GOVERNMENT AGENCY.                 The

department may issue a certificate of title to a government agency

if a vehicle or part of a vehicle is:

            (1)    forfeited to the government agency;

            (2)    delivered by court order under the Code of Criminal

Procedure to a government agency for official purposes;                   or

            (3)    sold as abandoned or unclaimed property under the

Code of Criminal Procedure.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.



      Sec. 501.035.      CERTIFICATE       OF    TITLE   FOR    FORMER    MILITARY

VEHICLE.    (a)    Notwithstanding any other law, the department shall

issue a certificate of title for a former military vehicle that is

not   registered     under   the    laws    of    this   state    if     all   other

requirements for issuance of a certificate of title are met.

      (b)   In    this   section,   "former      military      vehicle"    has   the

meaning assigned by Section 502.275(o).

Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.40(a), eff. Sept.

1, 1997.



      Sec. 501.036.      CERTIFICATE OF TITLE FOR FARM SEMITRAILER.

(a)   Notwithstanding any other provision of this chapter, the

department may issue a certificate of title for a farm semitrailer

with a gross weight of more than 4,000 pounds if:

            (1)    the farm semitrailer is eligible for registration



                              Page -19 -
under Section 504.504;      and

            (2)   all other requirements for issuance of a certificate

of title are met.

     (b)    To obtain a certificate of title under this section, the

owner of the farm semitrailer must:

            (1)   apply for the certificate of title in the manner

required by Section 501.023;         and

            (2)   pay the fee required by Section 501.138.

     (c)    The department shall adopt rules and forms to implement

and administer this section.

Added by Acts 2001, 77th Leg., ch. 422, Sec. 1, eff. Sept. 1, 2001.

Amended by:

     Acts 2007, 80th Leg., R.S., Ch. 280, Sec. 1, eff. June 15,

2007.



 SUBCHAPTER C. REFUSAL TO ISSUE AND REVOCATION OR SUSPENSION OF

                               CERTIFICATE

     Sec. 501.051.      GROUNDS FOR REFUSAL TO ISSUE OR FOR REVOCATION

OR SUSPENSION OF CERTIFICATE.        The department shall refuse to issue

a certificate of title or shall suspend or revoke a certificate of

title if:

            (1)   the application for the certificate contains a false

or fraudulent statement;

            (2)   the applicant failed to furnish required information

requested by the department;

            (3)   the applicant is not entitled to a certificate of

title;

            (4)   the department has reason to believe that the motor

vehicle is stolen;

            (5)   the   department    has   reason   to   believe   that   the

issuance of a certificate of title would defraud the owner or a

lienholder of the motor vehicle;



                             Page -20 -
           (6)    the registration for the motor vehicle is suspended

or revoked;      or

           (7)    the required fee has not been paid.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.



     Sec. 501.052.        HEARING ON REFUSAL TO ISSUE OR REVOCATION OR

SUSPENSION OF CERTIFICATE OF TITLE;          APPEAL.    (a)   An interested

person aggrieved by a refusal, suspension, or revocation under

Section 501.051 may apply for a hearing to the county assessor-

collector for the county in which the person is domiciled.             On the

day an assessor-collector receives the application, the assessor-

collector shall notify the department of the date of the hearing.

     (b)   The assessor-collector shall hold the hearing not earlier

than the 11th day and not later than the 15th day after the date

the assessor-collector receives the application for a hearing.

     (c)   At the hearing, the applicant and the department may

submit evidence.

     (d)   A determination of the assessor-collector is binding on

the applicant and the department as to whether the department

correctly refused to issue or correctly revoked or suspended the

certificate of title.

     (e)   An    applicant     aggrieved    by   the   determination   under

Subsection (d) may appeal to the county court of the county of the

applicant's residence.       An applicant must file an appeal not later

than the fifth day after the date of the assessor-collector's

determination.        The county court judge shall try the appeal in the

manner of other civil cases.       All rights and immunities granted in

the trial of a civil case are available to the interested parties.

 If the department's action is not sustained, the department shall

promptly issue a certificate of title for the vehicle.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.




                               Page -21 -
      Sec. 501.053.         FILING OF BOND AS ALTERNATIVE TO HEARING.

(a)   As    an   alternative       to    the    procedure      provided   by    Section

501.052, the person may file a bond with the department.                        On the

filing of the bond the department may issue the certificate of

title.

      (b)    The bond must be:

             (1)       in the form prescribed by the department;

             (2)       executed by the applicant;

             (3)       issued by a person authorized to conduct a surety

business in this state;

             (4)       in an amount equal to one and one-half times the

value of the vehicle as determined by the department;                     and

             (5)       conditioned      to   indemnify     all   prior    owners    and

lienholders and all subsequent purchasers of the vehicle or persons

who   acquire      a    security     interest     in     the   vehicle,   and    their

successors in interest, against any expense, loss, or damage,

including reasonable attorney's fees, occurring because of the

issuance of the certificate of title for the vehicle or for a

defect in or undisclosed security interest on the right, title, or

interest of the applicant to the vehicle.

      (c)    An interested person has a right of action to recover on

the bond for a breach of the bond's condition.                        The aggregate

liability of the surety to all persons may not exceed the amount of

the bond.

      (d)    A     bond    under     this      section    expires    on   the     third

anniversary of the date the bond became effective.                   The department

shall return an expired bond to the person who filed the bond

unless the department has been notified of a pending action to

recover on the bond.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.



  SUBCHAPTER D. SALES OF MOTOR VEHICLES AND TRANSFERS OF TITLE



                                   Page -22 -
      Sec. 501.071.    SALE    OF   VEHICLE;   TRANSFER   OF    TITLE.

(a)   Except as provided in Section 503.039, a motor vehicle may not

be the subject of a subsequent sale unless the owner designated in

the certificate of title transfers the certificate of title at the

time of the sale.

      (b)   The transfer of the certificate of title must be on a

form prescribed by the department that includes a statement that:

            (1)   the signer is the owner of the vehicle;      and

            (2)   there are no liens on the vehicle except as shown on

the certificate of title or as fully described in the statement.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by:

      Acts 2005, 79th Leg., Ch. 1127, Sec. 1, eff. September 1,

2005.



      Sec. 501.072.    ODOMETER DISCLOSURE STATEMENT.   (a)    Except as

provided by Subsection (c), the seller of a motor vehicle sold in

this state shall provide to the buyer, on a form prescribed by the

department, a written disclosure of the vehicle's odometer reading

at the time of the sale.         The form must include space for the

signature and printed name of both the seller and buyer.

      (b)   When application for a certificate of title is made, the

owner shall record the current odometer reading on the application.

 The written disclosure required by Subsection (a) must accompany

the application.

      (c)   An odometer disclosure statement is not required for the

sale of a motor vehicle that:

            (1)   has a manufacturer's rated carrying capacity of more

than two tons;

            (2)   is not self-propelled;

            (3)   is 10 or more years old;

            (4)   is sold directly by the manufacturer to an agency of



                              Page -23 -
the   United     States       government    in   conformity   with   contractual

specifications;         or

            (5)       is a new motor vehicle.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.



      Sec. 501.073.          SALES IN VIOLATION OF CHAPTER.      A sale made in

violation of this chapter is void and title may not pass until the

requirements of this chapter are satisfied.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.



      Sec. 501.074.          TRANSFER OF VEHICLE BY OPERATION OF LAW.

(a)   The department shall issue a new certificate of title for a

motor vehicle registered in this state for which the ownership is

transferred by operation of law, including by inheritance, devise

or bequest, bankruptcy, receivership, judicial sale, or other

involuntary divestiture of ownership after receiving:

            (1)       a certified copy of the order appointing a temporary

administrator or of the probate proceedings;

            (2)       letters testamentary or letters of administration;

            (3)       if administration of an estate is not necessary, an

affidavit showing that administration is not necessary, identifying

all heirs, and including a statement by the heirs of the name in

which the certificate shall be issued;

            (4)       a court order;       or

            (5)       the bill of sale from an officer making a judicial

sale.

      (b)   If    a    lien    is   foreclosed    by   nonjudicial   means,   the

department may issue a new certificate of title in the name of the

purchaser at the foreclosure sale on receiving the affidavit of the

lienholder of the fact of the nonjudicial foreclosure.

      (c)   If a constitutional or statutory lien is foreclosed, the

department may issue a new certificate of title in the name of the



                                    Page -24 -
purchaser at the foreclosure sale on receiving:

              (1)   the affidavit of the lienholder of the fact of the

creation of the lien and of the divestiture of title according to

law;    and

              (2)   proof of notice as required by Sections 70.004 and

70.006, Property Code.

       (d)    Notwithstanding the terms of Section 501.005, in the

event of a conflict between this section and other law, this

section controls.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.        Amended

by Acts 1997, 75th Leg., ch. 165, Sec. 30.41, eff. Sept. 1, 1997;

Acts 2001, 77th Leg., ch. 76, Sec. 2, eff. May 14, 2001.



       Sec. 501.075.     VALIDITY   OF   DOCUMENTS   NOT   NOTARIZED.     A

document necessary to transfer ownership of a motor vehicle is

valid without regard to whether the document is executed before a

notary public.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.



       Sec. 501.076.     LIMITED POWER OF ATTORNEY.    (a)   An owner who

has a contractual option to transfer ownership of a vehicle in full

or partial satisfaction of the balance owed on the vehicle, as

provided in Section 348.123(b)(5), Finance Code, may execute a

written limited power of attorney that authorizes an agent to

complete and sign for the owner, and provide to the transferee, the

form to transfer the title under Section 501.071 and the odometer

disclosure under Section 501.072, and the other documents necessary

to transfer title.

       (b)    The owner may execute the limited power of attorney at

the time the owner enters the contract giving the owner the option

to transfer the vehicle or at any time after that date.                 The

limited power of attorney may only be used if an owner elects to



                              Page -25 -
transfer the vehicle in full or partial satisfaction of the

contract and may not be used by the holder of the contract as part

of the holder's exercise of a remedy for a default by the owner

under the contract.

      (c)   The person named as the agent in the limited power of

attorney must meet the following requirements:

            (1)   the person may be a person who has been appointed by

the   commissioner's    court   as   a   deputy   to   perform   vehicle

registration functions under Section 502.112, a license vehicle

auction company holding a wholesale general distinguishing number

under Section 503.022, a person who has a permit similar to one of

the foregoing that is issued by the state in which the owner is

located, or another person authorized by law to execute title

documents in the state in which the owner executes the documents;

and

            (2)   the person may not be the transferee or an employee

of the transferee.     The person may not act as the agent of both the

transferor and transferee in the transaction.      For the purposes of

this section, a person is not the agent of both the transferor and

transferee in a transaction unless the person has the authority to

sign the documents pertaining to the transfer of title on behalf of

both the transferor and the transferee.

      (d)   If a limited power of attorney is used under Subsection

(a), the holder of the contract shall accompany the power of

attorney with a written statement that the vehicle was returned at

the election of the owner in full or partial satisfaction of the

owner's obligations under the contract and not as the result of the

exercise by the holder of the contract of its remedies for default.

      (e)   A signed and dated written odometer disclosure containing

the information described in this subsection may be included on or

with the power of attorney if the power of attorney is executed

within 120 days before the date of the transfer and is accompanied



                            Page -26 -
by   the   conspicuous   written   notification   described   in   this

subsection.    If an odometer disclosure is not obtained in that

manner, the transferee or agent or the person to whom the vehicle

is delivered at the time of the transfer shall request an odometer

disclosure as provided in this subsection.    Not more than 120 days

before the transfer of the vehicle by the owner, the transferee or

agent under the power of attorney or person receiving delivery of

the vehicle shall in writing request the owner to provide a signed

and dated written statement stating the odometer reading (not to

include tenths of a mile) as of the date of the statement, and

further stating words to the effect that either:      (i) to the best

of the owner's knowledge, the odometer reading reflects the actual

mileage of the vehicle;    (ii) the actual mileage has gone over the

odometer's mechanical limits and the odometer reading reflects the

amount of mileage in excess of the mechanical limits of the

odometer, if the owner knows that to be the case;       or (iii) the

odometer reading is not the actual mileage, if the owner knows that

to be the case.   The statement may consist of a form in which the

agent or transferee or person receiving the vehicle includes the

identification of the vehicle and owner and which allows the owner

to fill in the odometer reading and mark an applicable box to

indicate which of condition (i), (ii), or (iii) is applicable and

to date and sign the statement.     With the request for the owner's

statement, the transferee or agent or person receiving the vehicle

shall provide a written notification to the owner to the effect

that the owner has a duty under law to state the odometer reading,

state which of conditions (i), (ii), or (iii) is applicable, and

sign, date, and return the statement and that failing to do so or

providing false information may result in fines or imprisonment.

Unless the written notification is delivered to the owner at

substantially the same time that the owner is delivering the signed

and dated owner's statement, the written notification must also



                           Page -27 -
state a date by which the owner must provide this information and

an address to which it may be delivered.     This written notification

to the owner must be in bold letters, underlined, or otherwise

conspicuous and may be in a separate document or included as part

of a form to be used for the owner's statement or in another

document relating to the potential transfer.         The transferee or

agent or the person receiving delivery of the vehicle may mail the

request and notification to the last known address of the owner or

may otherwise send or deliver it to the owner.            If there are

multiple owners of the same vehicle, the request and notification

may be sent to one or more of them and it shall be sufficient for

one owner to sign the statement.      The owner has a duty to return

the signed and dated statement as directed in the notification.         In

completing the odometer disclosure on the owner's behalf, the agent

shall identify the same condition (i), (ii), or (iii) provided in

the owner's statement, unless the agent knows that the condition

identified in the owner's statement is not correct.       The agent will

not indicate in the odometer disclosure it completes on the owner's

behalf that the odometer reading is not the actual mileage unless

either the owner has so indicated in the owner's statement or the

agent knows that the owner's statement is not correct.        The agent

shall transmit the owner's statement it receives to the transferee

after the title transfer is completed.         The owner's statement

received by the transferee under this subsection need not be filed

with the filing office for the other title documents, but the

transferee shall retain the owner's statement for a time period and

in a similar manner to the retention methods used by a lessor to

retain statements under 49 C.F.R. Section 580.8(b), as it may from

time to time be amended.     The transferee may rely upon the agent's

odometer disclosure and the owner's statement unless it knows that

they are not correct.       A failure by an owner to comply with an

obligation   under   this   subsection   subjects   the   owner   to   the



                            Page -28 -
penalties and enforcement provisions of Subchapter H but does not

affect the validity of the transfer of title.

      (f)   This section does not in any way impair or impede any

transfers made through use of a power of attorney prior to the

effective date of this section, and such transfers shall continue

to be valid if they comply with the provisions of this section or

would    otherwise   comply    with   the    law   in   effect   prior   to   the

effective date of this section.             This section does not apply to

powers of attorney authorized under federal law or regulation that

authorize a transferee to act as the agent of the transferor under

certain circumstances or to powers of attorney otherwise authorized

by the law of this state.       This section does not affect the use of

powers of attorney to sign, complete, and deliver the form to

transfer title and other documents necessary to transfer title,

including the odometer disclosure, in title transfers other than

those described in Subsection (a).

      (g)   The power of attorney created in this section shall be

limited for the purposes and duration specified in this section.

Added by Acts 2003, 78th Leg., ch. 958, Sec. 1, eff. Sept. 1, 2003.



        SUBCHAPTER E. NONREPAIRABLE AND SALVAGE MOTOR VEHICLES

      Sec. 501.091.       DEFINITIONS.      In this subchapter:

            (1)   "Actual cash value" means the market value of a

motor vehicle.

            (2)   "Casual sale" means the sale by a salvage vehicle

dealer or an insurance company of not more than five nonrepairable

motor vehicles or salvage motor vehicles to the same person during

a calendar year.        The term does not include:

                  (A)    a sale at auction to a salvage vehicle dealer;

 or

                  (B)     the sale of an export-only motor vehicle to a

person who is not a resident of the United States.



                               Page -29 -
          (3)   "Damage" means sudden damage to a motor vehicle

caused by the motor vehicle being wrecked, burned, flooded, or

stripped of major component parts.        The term does not include

gradual damage from any cause, sudden damage caused by hail, or any

damage caused only to the exterior paint of the motor vehicle.

          (4)   "Export-only motor vehicle" means a motor vehicle

described by Section 501.099.

          (5)   "Insurance company" means:

                (A)   a   person    authorized   to   write   automobile

insurance in this state;    or

                (B)   an out-of-state insurance company that pays a

loss claim for a motor vehicle in this state.

          (6)   "Major component part" means one of the following

parts of a motor vehicle:

                (A)   the engine;

                (B)   the transmission;

                (C)   the frame;

                (D)   a fender;

                (E)   the hood;

                (F)   a door allowing entrance to or egress from the

passenger compartment of the motor vehicle;

                (G)   a bumper;

                (H)   a quarter panel;

                (I)   a deck lid, tailgate, or hatchback;

                (J)   the cargo box of a one-ton or smaller truck,

including a pickup truck;

                (K)   the cab of a truck;

                (L)   the body of a passenger motor vehicle;

                (M)   the roof or floor pan of a passenger motor

vehicle, if separate from the body of the motor vehicle.

          (7)   "Metal recycler" means a person who:

                (A)   is predominately engaged in the business of



                            Page -30 -
obtaining ferrous or nonferrous metal that has served its original

economic purpose to convert the metal, or sell the metal for

conversion, into raw material products consisting of prepared

grades and having an existing or potential economic value;

                      (B)     has a facility to convert ferrous or nonferrous

metal into raw material products consisting of prepared grades and

having an existing or potential economic value, by method other

than the exclusive use of hand tools, including the processing,

sorting,        cutting,      classifying,         cleaning,     baling,   wrapping,

shredding, shearing, or changing the physical form or chemical

content of the metal;            and

                      (C)     sells or purchases the ferrous or nonferrous

metal solely for use as raw material in the production of new

products.

            (8)       "Motor vehicle" has the meaning assigned by Section

501.002(14).

            (9)       "Nonrepairable motor vehicle" means a motor vehicle

that:

                      (A)     is damaged, wrecked, or burned to the extent

that the only residual value of the vehicle is as a source of parts

or scrap metal;          or

                      (B)     comes into this state under a title or other

ownership        document       that     indicates      that      the   vehicle       is

nonrepairable, junked, or for parts or dismantling only.

            (10)        "Nonrepairable vehicle title" means a document

issued     by     the       department      that    evidences     ownership     of    a

nonrepairable motor vehicle.

            (11)        "Out-of-state buyer" means a person licensed in an

automotive       business      by   another    state    or     jurisdiction    if    the

department has listed the holders of such a license as permitted

purchasers       of   salvage       motor   vehicles     or    nonrepairable    motor

vehicles based on substantially similar licensing requirements and



                                    Page -31 -
on whether salvage vehicle dealers licensed in Texas are permitted

to purchase salvage motor vehicles or nonrepairable motor vehicles

in the other state or jurisdiction.

           (12)     "Out-of-state        ownership              document"        means       a

negotiable document issued by another state or jurisdiction that

the   department    considers       sufficient       to        prove    ownership      of   a

nonrepairable motor vehicle or salvage motor vehicle and to support

the issuance of a comparable Texas certificate of title for the

motor vehicle.      The term does not include a title issued by the

department,   including         a     regular       certificate             of   title,     a

nonrepairable vehicle title, a salvage vehicle title, a Texas

Salvage Certificate, Certificate of Authority to Demolish a Motor

Vehicle, or another ownership document issued by the department.

           (13)     "Public     highway"      has        the    meaning      assigned       by

Section 502.001.

           (14)     "Rebuilder"       means     a    person           who   acquires      and

repairs, rebuilds, or reconstructs for operation on a public

highway, three or more salvage motor vehicles in a calendar year.

           (15)     "Salvage motor vehicle":

                   (A)   means a motor vehicle that:

                         (i)    has    damage       to    or     is    missing    a    major

component part to the extent that the cost of repairs, including

parts and labor other than the cost of materials and labor for

repainting the motor vehicle and excluding sales tax on the total

cost of repairs, exceeds the actual cash value of the motor vehicle

immediately before the damage; or

                         (ii)   is damaged and that comes into this state

under an out-of-state salvage motor vehicle certificate of title or

similar out-of-state ownership document that states on its face

"accident damage," "flood damage," "inoperable," "rebuildable,"

"salvageable," or similar notation; and

                   (B)   does not include an out-of-state motor vehicle



                                Page -32 -
with a "rebuilt," "prior salvage," "salvaged," or similar notation,

a nonrepairable motor vehicle, or a motor vehicle for which an

insurance company has paid a claim for:

                             (i)    the cost of repairing hail damage; or

                             (ii)    theft,    unless   the    motor    vehicle   was

damaged   during       the    theft    and    before    recovery   to    the   extent

described by Paragraph (A)(i).

              (16)    "Salvage vehicle title" means a document issued by

the department that evidences ownership of a salvage motor vehicle.

              (17)    "Salvage vehicle dealer" means a person engaged in

this state in the business of acquiring, selling, dismantling,

repairing, rebuilding, reconstructing, or otherwise dealing in

nonrepairable motor vehicles, salvage motor vehicles, or used

parts.    The term does not include a person who casually repairs,

rebuilds, or reconstructs fewer than three salvage motor vehicles

in the same calendar year.             The term includes a person engaged in

the business of:

                     (A)     a salvage vehicle dealer, regardless of whether

the person holds a license issued by the department to engage in

that business;

                     (B)     dealing in nonrepairable motor vehicles or

salvage motor vehicles, regardless of whether the person deals in

used parts;      or

                     (C)     dealing in used parts regardless of whether the

person deals in nonrepairable motor vehicles or salvage motor

vehicles.

              (18)    "Self-insured motor vehicle" means a motor vehicle

for which the evidence of ownership is a manufacturer's certificate

of   origin    or     for    which    the    department   or   another    state   or

jurisdiction has issued a regular certificate of title, is self-

insured by the owner, and is owned by an individual, a business, or

a governmental entity, without regard to the number of motor



                                    Page -33 -
vehicles they own or operate.             The term does not include a motor

vehicle that is insured by an insurance company.

               (19)   "Used    part"   means     a   part    that     is   salvaged,

dismantled, or removed from a motor vehicle for resale as is or as

repaired.       The term includes a major component part but does not

include a rebuildable or rebuilt core, including an engine, block,

crankshaft, transmission, or other core part that is acquired,

possessed, or transferred in the ordinary course of business.

Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.43(a), eff. Sept.

1, 1997.       Renumbered from Transportation Code, Sec. 501.0911 and

amended by Acts 2003, 78th Leg., ch. 1325, Sec. 17.02, eff. Sept.

1, 2003.

Amended by:

     Acts 2005, 79th Leg., Ch. 567, Sec. 1, eff. September 1, 2005.



     Sec. 501.092.          INSURANCE COMPANY TO SURRENDER CERTIFICATES OF

TITLE TO CERTAIN SALVAGE MOTOR VEHICLES OR NONREPAIRABLE MOTOR

VEHICLES.       (a)    An insurance company that is licensed to conduct

business in this state and that acquires, through payment of a

claim, ownership or possession of a salvage motor vehicle or

nonrepairable motor vehicle covered by a certificate of title

issued by this state or a manufacturer's certificate of origin

shall   surrender       a   properly   assigned      title       or   manufacturer's

certificate of origin to the department, on a form prescribed by

the department, except that not earlier than the 46th day after the

date of payment of the claim the insurance company may surrender a

certificate of title, on a form prescribed by the department, and

receive    a    salvage      certificate    of   title      or    a   nonrepairable

certificate      of    title    without    obtaining     a    properly      assigned

certificate of title if the insurance company:

               (1)    has obtained the release of all liens on the motor

vehicle;



                                 Page -34 -
            (2)       is unable to locate one or more owners of the motor

vehicle;    and

            (3)       has provided notice to the last known address in the

department's records to each owner that has not been located:

                      (A)   by registered or certified mail, return receipt

requested;       or

                      (B)   if   a     notice   sent      under   Paragraph    (A)   is

returned unclaimed, by publication in a newspaper of general

circulation in the area where the unclaimed mail notice was sent.

     (b)    For a salvage motor vehicle, the insurance company shall

apply for a salvage vehicle title.                     For a nonrepairable motor

vehicle, the insurance company shall apply for a nonrepairable

vehicle title.

     (c)    An insurance company may not sell a motor vehicle to

which this section applies unless the department has issued a

salvage vehicle title or a nonrepairable vehicle title for the

motor vehicle or a comparable ownership document has been issued by

another state or jurisdiction for the motor vehicle.

     (d)    An insurance company may sell a motor vehicle to which

this section applies, or assign a salvage vehicle title or a

nonrepairable vehicle title for the motor vehicle, only to a

salvage vehicle dealer, an out-of-state buyer, a buyer in a casual

sale at auction, or a metal recycler.                 If the motor vehicle is not

a salvage motor vehicle or a nonrepairable motor vehicle, the

insurance    company        is   not    required     to    surrender   the    regular

certificate of title for the vehicle or to be issued a salvage

vehicle title or a nonrepairable vehicle title for the motor

vehicle.

     (e)    An    insurance       company       or   other   person    who    acquires

ownership of a motor vehicle other than a nonrepairable or salvage

motor vehicle may voluntarily and on proper application obtain a

salvage vehicle title or a nonrepairable vehicle title for the



                                     Page -35 -
vehicle.

Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.43(a), eff. Sept.

1, 1997.    Renumbered from Transportation Code, Sec. 501.0912 and

amended by Acts 2003, 78th Leg., ch. 1325, Sec. 17.02, eff. Sept.

1, 2003.



      Sec. 501.093.    INSURANCE COMPANY REPORT ON CERTAIN VEHICLES.

(a)   If an insurance company pays a claim on a nonrepairable motor

vehicle or salvage motor vehicle and the insurance company does not

acquire ownership of the motor vehicle, the insurance company shall

submit to the department, before the 31st day after the date of the

payment of the claim, on the form prescribed by the department, a

report stating that the insurance company:

            (1)   has paid a claim on the motor vehicle;      and

            (2)   has not acquired ownership of the motor vehicle.

      (b)   The owner of a motor vehicle to which this section

applies may not operate or permit operation of the motor vehicle on

a public highway or transfer ownership of the motor vehicle by sale

or otherwise unless the department has issued a salvage vehicle

title or a nonrepairable vehicle title for the motor vehicle or a

comparable ownership document has been issued by another state or

jurisdiction for the motor vehicle.

      (c)   Subsection (b) does not apply if:

            (1)   the department has issued a nonrepairable vehicle

title or salvage vehicle title for the motor vehicle;         or

            (2)   another   state   or   jurisdiction   has   issued   a

comparable out-of-state ownership document for the motor vehicle.

Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.43(a), eff. Sept.

1, 1997.    Renumbered from Transportation Code Sec. 501.0915 and

amended by Acts 2003, 78th Leg., ch. 1325, Sec. 17.02, eff. Sept.

1, 2003.




                            Page -36 -
      Sec. 501.094.       SELF-INSURED MOTOR VEHICLE.            (a)   This section

applies only to a motor vehicle in this state that is:

              (1)   a self-insured motor vehicle;

              (2)   damaged to the extent it becomes a nonrepairable or

salvage motor vehicle;          and

              (3)   removed from normal operation by the owner.

      (b)     The owner of a motor vehicle to which this section

applies shall submit to the department before the 31st day after

the date of the damage, on the form prescribed by the department, a

report stating that the motor vehicle was self-insured, damaged,

and was removed from normal operation.

      (c)     When the owner submits a report under Subsection (b), the

owner shall:

              (1)   surrender      the     regular   certificate       of   title   or

manufacturer's certificate of origin for the motor vehicle;                     and

              (2)   apply for a nonrepairable vehicle title or salvage

vehicle title under this subchapter.

Added by Acts 2003, 78th Leg., ch. 1325, Sec. 17.02, eff. Sept. 1,

2003.



      Sec. 501.095.       SALE, TRANSFER, OR RELEASE OF NONREPAIRABLE

MOTOR VEHICLE OR SALVAGE MOTOR VEHICLE.               (a)    If the department has

not issued a nonrepairable vehicle title or salvage vehicle title

for the motor vehicle and an out-of-state ownership document for

the   motor    vehicle    has    not       been   issued    by   another    state   or

jurisdiction,       a   business      or   governmental     entity     described    by

Subdivisions (1)-(3) may sell, transfer, or release a nonrepairable

motor vehicle or salvage motor vehicle only to a person who is:

              (1)   a licensed salvage vehicle dealer or metal recycler

under Chapter 2302, Occupations Code;

              (2)   an insurance company that has paid a claim on the

nonrepairable or salvage motor vehicle;



                                 Page -37 -
             (3)   a governmental entity;       or

             (4)   an out-of-state buyer.

     (b)     A person, other than a salvage vehicle dealer or an

insurance company licensed to do business in this state, who

acquired ownership of a nonrepairable or salvage motor vehicle that

has not been issued a nonrepairable vehicle title, salvage vehicle

title, or a comparable ownership document issued by another state

or jurisdiction shall, before selling the motor vehicle, surrender

the properly assigned certificate of title for the motor vehicle to

the department and apply to the department for:

             (1)   a nonrepairable vehicle title if the vehicle is a

nonrepairable motor vehicle;       or

             (2)   a salvage vehicle title if the vehicle is a salvage

motor vehicle.

     (c)     If the department has issued a nonrepairable vehicle

title or salvage vehicle title for the motor vehicle or another

state   or    jurisdiction   has   issued   a    comparable   out-of-state

ownership document for the motor vehicle, a person may sell,

transfer, or release a nonrepairable motor vehicle or salvage motor

vehicle to any person.

Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.43(a), eff. Sept.

1, 1997.     Amended by Acts 2001, 77th Leg., ch. 1421, Sec. 10, eff.

June 1, 2003.      Renumbered from Transportation Code Sec. 501.0916

and amended by Acts 2003, 78th Leg., ch. 1325, Sec. 17.02, eff.

Sept. 1, 2003.



     Sec. 501.096.      NONREPAIRABLE MOTOR VEHICLE OR SALVAGE MOTOR

VEHICLE DISMANTLED, SCRAPPED, OR DESTROYED.            (a)    If a salvage

vehicle dealer acquires ownership of a nonrepairable motor vehicle

or salvage motor vehicle for the purpose of dismantling, scrapping,

or destroying the motor vehicle, the dealer shall, before the 31st

day after the date the dealer acquires the motor vehicle, submit to



                             Page -38 -
the department a report stating that the motor vehicle will be

dismantled, scrapped, or destroyed.                The dealer shall:

             (1)    make    the   report      on   a   form   prescribed    by   the

department;        and

             (2)    submit    with      the    report    a    properly     assigned

manufacturer's certificate of origin, regular certificate of title,

nonrepairable vehicle title, salvage vehicle title, or comparable

out-of-state ownership document for the motor vehicle.

       (b)   After receiving the report and title or document, the

department shall issue the salvage vehicle dealer a receipt for the

manufacturer's certificate of origin, regular certificate of title,

nonrepairable vehicle title, salvage vehicle title, or comparable

out-of-state ownership document.

       (c)   The salvage vehicle dealer shall:

             (1)    keep on the business premises of the dealer, until

the third anniversary of the date the report on the motor vehicle

is submitted to the department, a record of the vehicle, its

ownership, and its condition as dismantled, scrapped, or destroyed;

 and

             (2)    present to the department, on the form prescribed by

the department, evidence that the motor vehicle was dismantled,

scrapped, or destroyed before the 61st day after the date the

dealer completed the dismantling, scrapping, or destruction of the

motor vehicle.

Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.43(a), eff. Sept.

1, 1997.     Amended by Acts 2001, 77th Leg., ch. 1421, Sec. 11, eff.

June 1, 2003.        Renumbered from Transportation Code Sec. 501.0917

and amended by Acts 2003, 78th Leg., ch. 1325, Sec. 17.02, eff.

Sept. 1, 2003.



       Sec. 501.097.       APPLICATION FOR NONREPAIRABLE VEHICLE TITLE OR

SALVAGE VEHICLE TITLE.            (a)   An application for a nonrepairable



                                  Page -39 -
vehicle title or salvage vehicle title must:

           (1)    be made on a form prescribed by the department and

accompanied by a $8 application fee;

           (2)    include,            in    addition   to   any    other    information

required by the department:

                  (A)        the name and current address of the owner;

                  (B)        a description of the motor vehicle, including

the make, style of body, model year, and vehicle identification

number;    and

                  (C)        a     statement     describing       whether    the    motor

vehicle:

                             (i)      was the subject of a total loss claim paid

by an insurance company under Section 501.092 or 501.093;

                             (ii)      is a self-insured motor vehicle under

Section 501.094;

                             (iii)         is an export-only motor vehicle under

Section 501.099;        or

                             (iv)      was sold, transferred, or released to the

owner or former owner of the motor vehicle or a buyer at a casual

sale;   and

           (3)    include the name and address of:

                  (A)    any currently recorded lienholder, if the motor

vehicle is a nonrepairable motor vehicle;                   or

                  (B)        any currently recorded lienholder or a new

lienholder, if the motor vehicle is a salvage motor vehicle.

    (b)    On    receipt         of    a    complete   application,        the   properly

assigned title or manufacturer's certificate of origin and the

application fee, the department shall, before the sixth business

day after the date the department receives the application, issue

the applicant the appropriate title for the motor vehicle.

    (c)    A nonrepairable vehicle title must state on its face that

the motor vehicle:



                                      Page -40 -
           (1)    may not:

                  (A)    be repaired, rebuilt, or reconstructed;

                  (B)    be issued a regular certificate of title or

registered in this state;

                  (C)    be operated on a public highway, in addition to

any other requirement of law;          and

           (2)    may only be used as a source for used parts or scrap

metal.

     (d)   The    fee    collected     under    Subsection   (a)(1)     shall   be

credited   to    the    state   highway   fund    to    defray   the   costs    of

administering this subchapter and the costs to the department for

issuing the title.

Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.43(a), eff. Sept.

1, 1997.   Renumbered from Transportation Code, Sec. 501.0920 and

amended by Acts 2003, 78th Leg., ch. 1325, Sec. 17.02, eff. Sept.

1, 2003.



     Sec. 501.098.       RIGHTS OF HOLDER OF NONREPAIRABLE VEHICLE TITLE

OR SALVAGE VEHICLE TITLE.        (a)    A person who holds a nonrepairable

vehicle title for a motor vehicle:

           (1)    is entitled to possess, transport, dismantle, scrap,

destroy, record a lien as provided for in Section 501.097(a)(3)(A),

and sell, transfer, or release ownership of the motor vehicle or a

used part from the motor vehicle;

           (2)    may not:

                  (A)    operate or permit the operation of the motor

vehicle on a public highway, in addition to any other requirement

of law;

                  (B)    repair,     rebuild,    or    reconstruct     the   motor

vehicle;   or

                  (C)    register the motor vehicle.

     (b)   A person who holds a nonrepairable certificate of title



                                Page -41 -
issued prior to September 1, 2003:

           (1)   is entitled to:

                 (A)   repair,    rebuild,   or   reconstruct   the    motor

vehicle;

                 (B)   possess,     transport,    dismantle,    scrap,    or

destroy the motor vehicle;        and

                 (C)   sell, transfer, or release ownership of the

vehicle or a used part from the motor vehicle;         and

           (2)   may not:

                 (A)   operate or permit the operation of the motor

vehicle on a public highway, in addition to any other requirement

of law;    or

                 (B)   register the motor vehicle.

     (c)   A person who holds a salvage vehicle title for a motor

vehicle:

           (1)   is entitled to possess, transport, dismantle, scrap,

destroy, repair, rebuild, reconstruct, record a lien on, and sell,

transfer, or release ownership of the motor vehicle or a used part

from the motor vehicle;     and

           (2)   may not operate or permit the operation of the motor

vehicle on a public highway, in addition to any other requirement

of law.

Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.43(a), eff. Sept.

1, 1997.    Renumbered from Transportation Code, Sec. 501.0921 and

amended by Acts 2003, 78th Leg., ch. 1325, Sec. 17.02, eff. Sept.

1, 2003.



     Sec. 501.099.     SALE OF EXPORT-ONLY MOTOR VEHICLES.       (a)     This

section applies to a nonrepairable motor vehicle or a salvage motor

vehicle that is offered for sale in this state to a person who

resides in a jurisdiction outside the United States.

     (b)   A person may purchase a nonrepairable motor vehicle or a



                            Page -42 -
salvage motor vehicle only if:

           (1)   the   person    purchases         the   motor    vehicle     from    a

licensed salvage vehicle dealer or a governmental entity;

           (2)   the motor vehicle has been issued a nonrepairable

vehicle title or a salvage vehicle title;                and

           (3)   the purchaser certifies to the seller on a form

provided by the department that the purchaser will:

                 (A)   remove    the       motor    vehicle      from   the   United

States;    and

                 (B)   not return the motor vehicle to any state of

the United States as a motor vehicle titled or registered under its

manufacturer's vehicle identification number.

     (c)   A salvage vehicle dealer or a governmental entity that

sells a nonrepairable motor vehicle or a salvage motor vehicle to a

person who is not a resident of the United States shall, before the

sale of the motor vehicle, obtain a copy, photocopy, or other

accurate    reproduction        of     a     valid       identification        card,

identification certificate, or an equivalent document issued to the

purchaser by the appropriate authority of the jurisdiction in which

the purchaser resides that bears a photograph of the purchaser and

is capable of being verified using identification standards adopted

by the United States or the international community.

     (d)   The   department     by   rule     shall      establish      a   list     of

identification documents that are valid under Subsection (c) and

provide a copy of the list to each holder of a salvage vehicle

dealer license and to each appropriate governmental entity.

     (e)   A salvage vehicle dealer or a governmental entity that

sells a nonrepairable motor vehicle or a salvage motor vehicle to a

person who is not a resident of the United States shall:

           (1)   stamp on the face of the title so as not to obscure

any name, date, or mileage statement on the title the words "FOR

EXPORT ONLY" in capital letters that are black;                  and



                              Page -43 -
            (2)    stamp in each unused reassignment space on the back

of the title the words "FOR EXPORT ONLY" and print the number of

the     dealer's   salvage      vehicle     license   or     the   name   of   the

governmental entity, as applicable.

      (f)   The words "FOR EXPORT ONLY" required by Subsection (e)

must be at least two inches wide and clearly legible.

      (g)   A salvage vehicle dealer or governmental entity who sells

a nonrepairable motor vehicle or a salvage motor vehicle under this

section to a person who is not a resident of the United States

shall keep on the business premises of the dealer or entity until

the third anniversary of the date of the sale:

            (1)    a copy of each document related to the sale of the

vehicle;    and

            (2)    a list of all vehicles sold under this section that

contains:

                   (A)   the date of the sale;

                   (B)   the name of the purchaser;

                   (C)   the    name   of    the   country    that   issued    the

identification document provided by the purchaser, as shown on the

document;    and

                   (D)   the vehicle identification number.

      (h)   This section does not prevent a person from exporting or

importing a used part obtained from an export-only motor vehicle.

Added by Acts 2003, 78th Leg., ch. 1325, Sec. 17.02, eff. Sept. 1,

2003.



      Sec. 501.100.      APPLICATION FOR REGULAR CERTIFICATE OF TITLE

FOR SALVAGE VEHICLE.           (a)   A vehicle for which a nonrepairable

certificate of title issued prior to September 1, 2003 or a salvage

vehicle title has been issued may be issued a regular certificate

of title after the motor vehicle has been repaired, rebuilt, or

reconstructed by a person described by Section 501.104(a) and, in



                                Page -44 -
addition to any other requirement of law, only if the application

is accompanied by a separate form that:

           (1)   describes each major component part used to repair

the motor vehicle;     and

           (2)   shows the identification number required by federal

law to be affixed to or inscribed on the part.

     (b)   On receipt of a complete application under this section

accompanied by the $13 fee for the certificate of title, the

department shall issue the applicant a regular certificate of title

for the motor vehicle.

     (c)   A regular certificate of title issued under this section

must:

           (1)   describe or disclose the motor vehicle's former

condition in a manner reasonably understandable to a potential

purchaser of the motor vehicle;     and

           (2)   bear on its face the words "REBUILT SALVAGE" in

capital letters that:

                 (A)   are red;

                 (B)   are centered on and occupy at least 15 percent

of the face of the certificate of title;     and

                 (C)   do not prevent any other words on the title

from being read or copied.

     (d)   In addition to the fee described by Subsection (b), the

applicant shall pay a $65 rebuilder fee.

     (e)   On or after the 31st day after the date the department

receives a rebuilder fee under Subsection (d), the department shall

deposit $50 of the fee to the credit of the state highway fund to

be used only by the Department of Public Safety to enforce this

chapter and $15 to the credit of the general revenue fund.

     (f)   The department may not issue a regular certificate of

title for a motor vehicle based on a:

           (1)   nonrepairable vehicle title or comparable out-of-



                             Page -45 -
state ownership document;

           (2)     receipt issued under Section 501.096(b);       or

           (3)     certificate of authority.

Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.43(a), eff. Sept.

1, 1997.       Renumbered from Transportation Code, Sec. 501.0922,

501.0923 as consolidated and amended by Acts 2003, 78th Leg., ch.

1325, Sec. 17.02, eff. Sept. 1, 2003.



     Sec. 501.101.       ISSUANCE OF TITLE TO MOTOR VEHICLE BROUGHT INTO

STATE.   (a)     This section applies only to a motor vehicle brought

into this state from another state or jurisdiction that has on any

certificate of title or comparable out-of-state ownership document

issued by the other state or jurisdiction:

           (1)     a "rebuilt," "salvage," or similar notation;         or

           (2)     a "nonrepairable," "dismantle only," "parts only,"

"junked," "scrapped," or similar notation.

     (b)   On receipt of a complete application from the owner of

the motor vehicle, the department shall issue the applicant the

appropriate certificate of title for the motor vehicle.

     (c)   A certificate of title issued under this section must

show on its face:

           (1)     the date of issuance;

           (2)     the name and address of the owner;

           (3)     any   registration   number   assigned   to   the   motor

vehicle;   and

           (4)    a description of the motor vehicle or other notation

the department considers necessary or appropriate.

Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.43(a), eff. Sept.

1, 1997.   Renumbered from Transportation Code, Sec. 501.0924 and

amended by Acts 2003, 78th Leg., ch. 1325, Sec. 17.02, eff. Sept.

1, 2003.




                              Page -46 -
     Sec. 501.102.     OFFENSES.   (a)   A person commits an offense if

the person:

           (1)   applies to the department for a regular certificate

of title for a motor vehicle;      and

           (2)   knows or reasonably should know that:

                 (A)   the vehicle is a nonrepairable motor vehicle

that has been repaired, rebuilt, or reconstructed;

                 (B)   the vehicle identification number assigned to

the motor vehicle belongs to a nonrepairable motor vehicle that has

been repaired, rebuilt, or reconstructed;

                 (C)   the title issued to the motor vehicle belongs

to a nonrepairable motor vehicle that has been repaired, rebuilt,

or reconstructed;

                 (D)   the vehicle identification number assigned to

the motor vehicle belongs to an export-only motor vehicle;

                 (E)   the motor vehicle is an export-only motor

vehicle;   or

                 (F)   the motor vehicle is a nonrepairable motor

vehicle or salvage motor vehicle for which a nonrepairable vehicle

title, salvage vehicle title, or comparable ownership document

issued by another state or jurisdiction has not been issued.

     (b)   A person commits an offense if the person knowingly

sells, transfers, or releases a salvage motor vehicle in violation

of this subchapter.

     (c)   A person commits an offense if the person knowingly fails

or refuses to surrender a regular certificate of title after the

person:

           (1)   receives a notice from an insurance company that the

motor vehicle is a nonrepairable or salvage motor vehicle;       or

           (2)   knows the vehicle has become a nonrepairable motor

vehicle or salvage motor vehicle under Section 501.094.

     (d)   Except as provided by Subsection (e), an offense under



                            Page -47 -
this section is a Class C misdemeanor.

    (e)    If it is shown on the trial of an offense under this

section that the defendant has been previously convicted of:

           (1)   one offense under this section, the offense is a

Class B misdemeanor;      or

           (2)   two or more offenses under this section, the offense

is a state jail felony.

Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.43(a), eff. Sept.

1, 1997.   Renumbered from Transportation Code, Sec. 501.0926 and

amended by Acts 2003, 78th Leg., ch. 1325, Sec. 17.02, eff. Sept.

1, 2003.



    Sec. 501.103.      COLOR OF NONREPAIRABLE VEHICLE TITLE OR SALVAGE

VEHICLE TITLE.    (a)    The department shall print a nonrepairable

vehicle title:

           (1)   in a color that distinguishes it from a regular

certificate of title or salvage vehicle title;       and

           (2)   so that it clearly shows that it is the negotiable

ownership document for a nonrepairable motor vehicle.

    (b)    A nonrepairable vehicle title must state on its face that

the motor vehicle:

           (1)   may not be:

                 (A)    issued a regular certificate of title;

                 (B)    registered in this state;   or

                 (C)    repaired, rebuilt, or reconstructed;     and

           (2)   may be used only as a source for used parts or scrap

metal.

    (c)    The department shall print a salvage vehicle title:

                 (A)    in a color that distinguishes it from a regular

certificate of title or nonrepairable vehicle title;       and

                 (B)    so that each document clearly shows that it is

the ownership document for a salvage motor vehicle.



                               Page -48 -
       (d)    A salvage vehicle title for a vehicle that is a salvage

motor vehicle because of damage caused exclusively by flood must

bear   a     notation     on    its   face    that   the    department   considers

appropriate.        If the title for a motor vehicle reflects the

notation required by this subsection, the owner may sell, transfer,

or release the motor vehicle only as provided by this subchapter.

       (e)    The department may provide a stamp to a person who is a

licensed salvage vehicle dealer under Chapter 2302, Occupations

Code, to mark the face of a title under this subchapter.                       The

department shall provide the stamp to the person for a fee in the

amount determined by the department to be necessary for the

department to recover the cost of providing the stamp.

Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.43(a), eff. Sept.

1, 1997.      Renumbered from Transportation Code, Sec. 501.0928 and

amended by Acts 2003, 78th Leg., ch. 1325, Sec. 17.02, eff. Sept.

1, 2003.



       Sec. 501.104.       REBUILDER         TO   POSSESS     TITLE      OR   OTHER

DOCUMENTATION.       (a)       This section applies only to:

              (1)   a rebuilder licensed as a salvage vehicle dealer;

              (2)   a person engaged in the business of a rebuilder,

regardless of whether the person is licensed to engage in that

business;      or

              (3)   a person engaged in the casual repair, rebuilding,

or reconstruction of fewer than three motor vehicles in the same

12-month period.

       (b)    A person described by Subsection (a) must possess:

              (1)   a   regular       certificate    of    title,    nonrepairable

vehicle title, salvage vehicle title, or comparable out-of-state

ownership document for any motor vehicle that is:

                    (A)    owned by the person;

                    (B)    in the person's inventory;          and



                                   Page -49 -
                   (C)   being offered for resale;        or

            (2)    a contract entered into with the owner, a work

order, or another document that shows the authority for the person

to possess any motor vehicle that is:

                   (A)   owned by another person;

                   (B)   on the person's business or casual premises;

and

                   (C)   being repaired, rebuilt, or reconstructed for

the other person.

Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.43(a), eff. Sept.

1, 1997.    Renumbered from Transportation Code, Sec. 501.0929 and

amended by Acts 2003, 78th Leg., ch. 1325, Sec. 17.02, eff. Sept.

1, 2003.



      Sec. 501.105.      RETENTION OF RECORDS RELATING TO CERTAIN CASUAL

SALES.   Each licensed salvage vehicle dealer or insurance company

that sells a nonrepairable motor vehicle or a salvage motor vehicle

at a casual sale shall keep on the business premises of the dealer

or the insurance company a list of all casual sales made during the

preceding 36-month period that contains:

            (1)    the date of the sale;

            (2)    the name of the purchaser;

            (3)    the   name   of   the   jurisdiction    that   issued   the

identification document provided by the purchaser, as shown on the

document;    and

            (4)    the vehicle identification number.

Added by Acts 2003, 78th Leg., ch. 1325, Sec. 17.02, eff. Sept. 1,

2003.



      Sec. 501.106.      ENFORCEMENT       OF   SUBCHAPTER.        (a)     This

subchapter shall be enforced by the department and any other

governmental or law enforcement entity, including the Department of



                                Page -50 -
Public Safety, and the personnel of the entity as provided by this

subchapter.

      (b)   The department, an agent, officer, or employee of the

department, or another person enforcing this subchapter is not

liable to a person damaged or injured by an act or omission

relating to the issuance of a regular certificate of title,

nonrepairable vehicle title, or salvage vehicle title under this

subchapter.

Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.43(a), eff. Sept.

1, 1997.    Renumbered from Transportation Code, Sec. 501.0930 and

amended by Acts 2003, 78th Leg., ch. 1325, Sec. 17.02, eff. Sept.

1, 2003.



      Sec. 501.107.     APPLICABILITY   OF   SUBCHAPTER   TO   RECYCLER.

(a)   This subchapter does not apply to a sale to, purchase by, or

other transaction by or with, a metal recycler except as provided

by Subsections (b) and (c).

      (b)   A metal recycler shall submit to the department the

properly assigned manufacturer's certificate of origin, regular

certificate of title, nonrepairable vehicle title, salvage vehicle

title, or comparable out-of-state ownership document that the

person receives in conjunction with the purchase of a motor vehicle

not later than the 60th day after the date the metal recycler

receives the title or out-of-state ownership document.

      (c)   This subchapter applies to a transaction with a metal

recycler in which a motor vehicle:

            (1)    is sold or delivered to the metal recycler for the

purpose of reuse or resale as a motor vehicle or as a source of

used parts;       and

            (2)    is used for that purpose.

Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.43(a), eff. Sept.

1, 1997.    Renumbered from Transportation Code, Sec. 501.0931 and



                             Page -51 -
amended by Acts 2003, 78th Leg., ch. 1325, Sec. 17.02, eff. Sept.

1, 2003.



                      SUBCHAPTER F. SECURITY INTERESTS

      Sec. 501.111.      PERFECTION OF SECURITY INTEREST.           (a)   Except

as provided by Subsection (b), a person may perfect a security

interest in a motor vehicle that is the subject of a first or

subsequent sale only by recording the security interest on the

certificate of title as provided by this chapter.

      (b)    A person may perfect a security interest in a motor

vehicle held as inventory by a person in the business of selling

motor vehicles only by complying with Chapter 9, Business &

Commerce Code.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.



      Sec. 501.112.      SALE    OR    SECURITY    INTEREST   NOT   CREATED   BY

CERTAIN     VEHICLE    LEASES.        Notwithstanding   any   other   law,    an

agreement for the lease of a motor vehicle does not create a sale

or security interest by merely providing that the rental price is

permitted or required to be adjusted under the agreement as

determined by the amount realized on the sale or other disposition

of the vehicle.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.



      Sec. 501.113.      RECORDATION          OF     SECURITY       INTEREST.

(a)   Recordation of a lien under this chapter is considered to

occur when the county assessor-collector:

             (1)   is presented with an application for a certificate

of title that discloses the lien with tender of the filing fee;               or

             (2)   accepts the application.

      (b)   For purposes of Chapter 9, Business & Commerce Code, the

time of recording a lien under this chapter is considered to be the



                                 Page -52 -
time of filing the security interest.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.



      Sec. 501.114.         ASSIGNMENT OF LIEN.         (a)   A lienholder may

assign a lien recorded under Section 501.113 by:

            (1)     applying to the county assessor-collector for the

assignment of the lien;           and

            (2)     notifying the debtor of the assignment.

      (b)   A     lienholder's      failure    to    notify   a     debtor   of    an

assignment      does      not   create   a   cause    of   action    against      the

lienholder.

      (c)   An application under Subsection (a) must be:

            (1)     signed by the person to whom the lien is assigned;

and

            (2)     accompanied by:

                    (A)     the applicable fee;

                    (B)    a copy of the assignment agreement executed by

the parties;       and

                    (C)     the certificate of title on which the lien to

be assigned is recorded.

      (d)   On receipt of the completed application and fee, the

department:

            (1)    may amend the department's records to substitute the

subsequent lienholder for the previous lienholder;                   and

            (2)     shall issue a new certificate of title as provided

by Section 501.027.

      (e)   The issuance of a certificate of title under Subsection

(d) is recordation of the assignment.               The time of the recordation

of a lien assigned under this section is considered to be the time

the lien was recorded under Section 501.113.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.




                                  Page -53 -
     Sec. 501.115.       DISCHARGE OF LIEN.        (a)    When a debt or claim

secured by a lien has been satisfied, the lienholder shall, within

a reasonable time not to exceed the maximum time allowed by Section

348.408, Finance Code, execute and deliver to the owner, or the

owner's designee, a discharge of the lien on a form prescribed by

the department.

     (b)    The owner may present the discharge and certificate of

title to the county assessor-collector with an application for a

new certificate of title and the department shall issue a new

certificate of title.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.                  Amended

by Acts 1997, 75th Leg., ch. 296, Sec. 1, eff. Sept. 1, 1997;                 Acts

1999, 76th Leg., ch. 268, Sec. 1, eff. May 28, 1999.



     Sec. 501.116.       CANCELLATION         OF   DISCHARGED       LIEN.      The

department may cancel a discharged lien that has been recorded on a

certificate    of    title   for   six   years     or   more   if   the   recorded

lienholder:

            (1)     does not exist;      or

            (2)     cannot be located for the owner to obtain a release

of the lien.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.



     Sec. 501.117.      ELECTRONIC LIEN SYSTEM.          (a)   The department by

rule shall develop a system under which a security interest in a

motor vehicle may be perfected, assigned, discharged, and canceled

electronically instead of by record maintained on a certificate of

title.     Participation by a lienholder in the system is voluntary.

     (b)    The department shall publish and distribute procedures

for using the system to county assessor-collectors and to financial

institutions and other potential motor vehicle lienholders.

     (c)    The provisions of this chapter relating to perfecting,



                              Page -54 -
assigning, discharging, and canceling a security interest in a

motor vehicle by record maintained on a certificate of title do not

apply to the extent the security interest is governed by rules

adopted under this section.

Added by Acts 2001, 77th Leg., ch. 505, Sec. 1, eff. Sept. 1, 2001.



                  SUBCHAPTER G. ADMINISTRATIVE PROVISIONS

      Sec. 501.131.        RULES;       FORMS.    (a)    The department may adopt

rules to administer this chapter.

      (b)   The department shall:

            (1)    in addition to the forms required by this chapter,

prescribe forms for a title receipt, manufacturer's certificate,

and   importer's        certificate,      and    other    forms   the   department

determines necessary;         and

            (2)    provide       each    county    assessor-collector      with   a

sufficient supply of the forms.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.



      Sec. 501.132.        DUPLICATE TITLE RECEIPT.           Except as otherwise

provided by department rule, the department may not issue a

duplicate title receipt unless the original title receipt or

certificate of title is surrendered.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.                 Amended

by Acts 2001, 77th Leg., ch. 67, Sec. 5, eff. Sept. 1, 2001.



      Sec. 501.133.       ISSUANCE OF NEW CERTIFICATE OF TITLE BECAUSE OF

SUBSEQUENT SALES.          (a)    If all of the forms of transfer on a

certificate of title have been used because of subsequent sales,

the certificate may be delivered to a county assessor-collector,

who shall:

            (1)    provide a title receipt in the manner required for a

first sale;       and



                                  Page -55 -
            (2)   send the certificate of title to the department on

the same day the certificate is received.

      (b)   On receipt of the certificate of title, the department

shall issue a new certificate of title.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.



      Sec. 501.134.    LOST   OR   DESTROYED   CERTIFICATE   OF   TITLE.

(a)   If a certificate of title is lost or destroyed, the owner or

lienholder disclosed on the certificate may obtain, in the manner

provided by this section and department rule, a certified copy of

the lost or destroyed certificate of title directly from the

department by applying on a form prescribed by the department and

paying a fee of $2. A fee collected under this subsection shall be

deposited to the credit of the state highway fund and may be spent

only as provided by Section 501.138.

      (b)   If a lien is disclosed on a certificate of title, the

department may issue a certified copy of the original certificate

of title only to the first lienholder.

      (c)   The department must plainly mark "certified copy" on the

face of a certified copy issued under this section, and each

subsequent certificate issued for the motor vehicle until the

vehicle is transferred.       A subsequent purchaser or lienholder of

the vehicle only acquires the rights, title, or interest in the

vehicle held by the holder of the certified copy.

      (d)   A purchaser or lienholder of a motor vehicle having a

certified copy issued under this section may at the time of the

purchase or establishment of the lien require that the seller or

owner indemnify the purchaser or lienholder and all subsequent

purchasers of the vehicle against any loss the person may suffer

because of a claim presented on the original certificate of title.

      (e)   If the certificate of title is recovered, the owner of

the vehicle shall promptly surrender the certificate of title to



                              Page -56 -
the department for cancellation, and the department shall eliminate

the words "certified copy" from any certificate of title issued for

that vehicle after that date.

       (f)    Except as provided by Subsection (g), the department may

not issue a certified copy of a certificate of title before the

fourth business day after the date application is made.

       (g)    The    department        may    issue        a    certified    copy     of     a

certificate of title before the fourth business day after the date

application is made only if the applicant:

              (1)    is the registered owner of the vehicle, the holder

of a recorded lien against the vehicle, or a verified agent of the

owner or lienholder;           and

              (2)    submits        personal     identification,            including        a

photograph, issued by an agency of this state or the United States.

       (h)    If the applicant is the agent of the owner or lienholder

of    the    vehicle   and     is     applying    on       behalf    of    the     owner   or

lienholder, the applicant must submit verifiable proof that the

person is the agent of the owner or lienholder.

       (i)    If an applicant for a certified copy of a certificate of

title is a person other than a person described by Subsection

(g)(1),      the    department       may     issue     a       certified    copy    of     the

certificate of title only by mail.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.                           Amended

by Acts 1997, 75th Leg., ch. 165, Sec. 30.42(a), eff. Sept. 1,

1997;       Acts 2001, 77th Leg., ch. 67, Sec. 6, eff. Sept. 1, 2001.



       Sec. 501.135.      RECORD OF STOLEN OR CONCEALED MOTOR VEHICLE.

(a)    The department shall:

              (1)   make a record of each report to the department that

a motor vehicle registered in this state has been stolen or

concealed in violation of Section 32.33, Penal Code;                          and

              (2)    note the fact of the report in the department's



                                     Page -57 -
records of the vehicle's certificate of title.

     (b)   A person who reports a motor vehicle as stolen or

concealed under Subsection (a) shall notify the department promptly

if the vehicle is recovered, and the department shall change its

records accordingly.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.



     Sec. 501.136.     ACTS BY DEPUTY COUNTY ASSESSOR-COLLECTOR.           A

deputy county assessor-collector, other than a limited service

deputy appointed under Section 502.112, may perform the duties of

an assessor-collector under this chapter.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.



     Sec. 501.137.     DUTY OF COUNTY ASSESSOR-COLLECTOR.        (a)     Each

county assessor-collector shall comply with this chapter.

     (b)   An assessor-collector who fails or refuses to comply with

this chapter is liable on the assessor-collector's official bond

for resulting damages suffered by any person.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.



For expiration of Subsections (b-2) and (b-3), see Subsection (b-

                                    3).

     Sec. 501.138.     COLLECTION AND DISPOSITION OF FEES.         (a)    An

applicant for a certificate of title, other than the state or a

political subdivision of the state, must pay the county assessor-

collector a fee of:

           (1)   $33 if the applicant's residence is a county located

within a nonattainment area as defined under Section 107(d) of the

federal Clean Air Act (42 U.S.C. Section 7407), as amended, or is

an affected county, as defined by Section 386.001, Health and

Safety Code; or

           (2)   $28   if   the   applicant's   residence   is   any   other



                             Page -58 -
county.

     (b)     The county assessor-collector shall send:

             (1)   $5 of the fee to the county treasurer for deposit in

the officers' salary fund;

             (2)   $8 of the fee to the department:

                   (A)   together with the application within the time

prescribed by Section 501.023; or

                   (B)   if the fee is deposited in an interest-bearing

account or certificate in the county depository or invested in an

investment authorized by Subchapter A, Chapter 2256, Government

Code, not later than the 35th day after the date on which the fee

is received; and

             (3)   the following amount to the comptroller at the time

and in the manner prescribed by the comptroller:

                   (A)   $20 of the fee if the applicant's residence is

a county located within a nonattainment area as defined under

Section 107(d) of the federal Clean Air Act (42 U.S.C. Section

7407), as amended, or is an affected county, as defined by Section

386.001, Health and Safety Code; or

                   (B)   $15 of the fee if the applicant's residence is

any other county.

     (b-1)     Fees collected under Subsection (b) to be sent to the

comptroller shall be deposited as follows:

             (1)   before September 1, 2008, to the credit of the Texas

emissions reduction plan fund; and

             (2)   on or after September 1, 2008, to the credit of the

Texas Mobility Fund, except that $5 of each fee imposed under

Subsection (a)(1) and deposited on or after September 1, 2008, and

before September 1, 2015, shall be deposited to the credit of the

Texas emissions reduction plan fund.

      Text of subsection effective until September 01, 2010

     (b-2)    The comptroller shall establish a record of the amount



                              Page -59 -
of the fees deposited to the credit of the Texas Mobility Fund

under Subsection (b-1).      On or before the fifth workday of each

month, the department shall remit to the comptroller for deposit to

the credit of the Texas emissions reduction plan fund an amount of

money equal to the amount of the fees deposited by the comptroller

to the credit of the Texas Mobility Fund under Subsection (b-1) in

the preceding month.      The department shall use for remittance to

the comptroller as required by this subsection money in the state

highway fund that is not required to be used for a purpose

specified by Section 7-a, Article VIII, Texas Constitution, and may

not use for that remittance money received by this state under the

congestion     mitigation   and   air     quality   improvement   program

established under 23 U.S.C. Section 149.

     (b-3)     This subsection and Subsection (b-2) expire September

1, 2015.

     (c)     Of the amount received under Subsection (b)(2), the

department shall deposit:

             (1)   $5 in the general revenue fund;     and

             (2)   $3 to the credit of the state highway fund to

recover the expenses necessary to administer this chapter.

     (d)   The county owns all interest earned on fees deposited or

invested under Subsection (b)(2)(B).         The county treasurer shall

credit that interest to the county general fund.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.        Amended

by Acts 2003, 78th Leg., ch. 1331, Sec. 24, eff. June 20, 2003.

Amended by:

     Acts 2005, 79th Leg., Ch. 1125, Sec. 19, eff. September 1,

2005.

     Acts 2007, 80th Leg., R.S., Ch. 262, Sec. 2.15, eff. June 8,

2007.

     Acts 2007, 80th Leg., R.S., Ch. 262, Sec. 2.16, eff. June 8,

2007.



                             Page -60 -
      SUBCHAPTER H. PENALTIES AND OTHER ENFORCEMENT PROVISIONS

      Sec. 501.151.       PLACEMENT OF SERIAL NUMBER WITH INTENT TO

CHANGE IDENTITY.         (a)   A person commits an offense if the person

stamps or places a serial number on a vehicle or part of a vehicle

with the intent of changing the identity of the vehicle.

      (b)   It is an affirmative defense to prosecution of an offense

under this section that the person acted with respect to a number

assigned by:

            (1)    a   vehicle    manufacturer   and   the   person   was   an

employee of the manufacturer acting within the course and scope of

employment;       or

            (2)    the department, and the person was:

                   (A)    discharging official duties as an agent of the

department;       or

                   (B)    complying with department rule as an applicant

for a serial number assigned by the department.

      (c)   An offense under this section is a felony of the third

degree.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.



      Sec. 501.152.       SALE OR OFFER WITHOUT TITLE RECEIPT OR TITLE.

(a)   Except as provided by this section, a person commits an

offense if the person:

            (1)    sells, offers to sell, or offers as security for an

obligation a motor vehicle registered in this state;            and

            (2)    does not possess the title receipt or certificate of

title for the vehicle.

      (b)   It is not a violation of this section for the beneficial

owner of a vehicle to sell or offer to sell a vehicle without

having possession of the certificate of title to the vehicle if the

sole reason he or she does not have possession of the certificate



                                 Page -61 -
of title is that the title is in the possession of a lienholder who

has not complied with the terms of Section 501.115(a) of this code.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.      Amended

by Acts 1997, 75th Leg., ch. 296, Sec. 2, eff. Sept. 1, 1997.



      Sec. 501.153.    APPLICATION FOR TITLE FOR STOLEN OR CONCEALED

VEHICLE.    A person commits an offense if the person applies for a

certificate of title for a motor vehicle that the person knows is

stolen or concealed in violation of Section 32.33, Penal Code.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.



      Sec. 501.154.   ALTERATION OF CERTIFICATE OR RECEIPT.    A person

commits an offense if the person alters a manufacturer's or

importer's certificate, a title receipt, or a certificate of title.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.



      Sec. 501.155.    FALSE NAME, FALSE INFORMATION, AND FORGERY.

(a)   A person commits an offense if the person knowingly provides

false or incorrect information or without legal authority signs the

name of another person on:

            (1)   an application for a certificate of title;

            (2)   an application for a certified copy of an original

certificate of title;

            (3)   an assignment of title for a motor vehicle;

            (4)   a discharge of a lien on a title for a motor

vehicle;    or

            (5)   any other document required by the department or

necessary to the transfer of ownership of a motor vehicle.

      (b)   An offense under this section is a felony of the third

degree.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.




                            Page -62 -
     Sec. 501.156.       DUTY OF TRANSPORTERS TO DETERMINE RIGHT OF

POSSESSION;      OFFENSE.   (a)   The master or captain of a ship or

airplane or a person who owns or controls the operation of a ship

or airplane, in whole or part:

           (1)    may not take on board or allow to be taken on board

the ship or airplane in this state for transport a motor vehicle

without inquiring of the motor vehicle titles and registration

division of the department as to the recorded ownership of the

motor vehicle;     and

           (2)    must make a reasonable inquiry as to the right of

possession of a motor vehicle by the person delivering the vehicle

for transport if the recorded owner of the vehicle is a person

other than the person delivering the vehicle for transport.

     (b)   A person who violates this section commits an offense.

An offense under this section is a misdemeanor punishable by a fine

of not less than $50 or more than $500 for a first offense and, at

the jury's discretion, not less than $100 or more than $1,000 for a

subsequent offense.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.



     Sec. 501.157.       PENALTIES.   (a)   Unless otherwise provided by

this chapter, an offense under this chapter is a misdemeanor

punishable by a fine of not less than $1 or more than $100 for the

first offense.     If a person is subsequently convicted of the same

offense, at the jury's discretion, a person may be fined not less

than $2 or more than $200.

     (b)   A person commits an offense if the person violates

Subchapter E     or a rule adopted under that subchapter.     An offense

under this subsection is a Class A misdemeanor.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.       Amended

by Acts 1997, 75th Leg., ch. 165, Sec. 30.43(b), eff. Sept. 1,

1997.



                              Page -63 -
     Sec. 501.158.    SEIZURE OF STOLEN VEHICLE OR VEHICLE WITH

ALTERED SERIAL NUMBER.    (a)    A peace officer may seize a vehicle or

part of a vehicle without a warrant if the officer has probable

cause to believe that the vehicle or part:

           (1)   is stolen;     or

           (2)   has had the serial number removed, altered, or

obliterated.

     (b)   A vehicle or part seized under this section may be

treated as stolen property for purposes of custody and disposition

of the vehicle or part.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.



     Sec. 501.159.    ALIAS CERTIFICATE OF TITLE.      On receipt of a

written request approved by the executive administrator of a law

enforcement agency, the department may issue a certificate of title

for a vehicle in an alias for the law enforcement agency's use in a

covert criminal investigation.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.




                              Page -64 -

				
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